Chinese firm to dig three oil wells in Qatar
Doha, September 1, 2009
Qatar Petroleum (QP) has signed an agreement with China National Offshore Oil Corporation (CNOOC) to dig three oil wells for the offshore Block BC (pre-Khuff), a report said on Tuesday.
The agreement is for 25 years, and kicks off with a five-year exploration period in which three wells will be dug at a cost of about $100 million, the Gulf Times report said.
Qatar Petroleum was not immediately available for comment.
The exploration and production sharing agreement was signed between Qatar Petroleum and CNOOC Middle East (Qatar), a subsidiary of CNOOC, the newspaper said.
The agreement is Qatar's first for the exploration and production of hydrocarbons from the deep pre-Khuff reservoirs, which are offshore the east of the country.
Future investments could exceed $100 million with further developments, the paper said, citing CNOOC chairman Fu Cheng Yu.
Qatar Deputy Premier and Energy and Industry Minister Abdullah bin Hamad Al-Attiyah said a further exploration bidding campaign or pre-Khuff block 'D' will start soon and that he expected to sign more agreements in 2010.
'We are also in discussions with CNOOC for another supply of LNG,' the paper quoted Al-Attiyah as saying, but gave no further details. - Reuters